Why do insiders trade? Evidence based on unique data on Swedish insiders

Citations of this article
Mendeley users who have this article in their library.
Get full text


In this paper, we examine if corporate insiders have other motives for trading besides exploitation of private information. Our results show that insiders' portfolio re-balancing objectives, tax considerations and behavioral biases play the most important role in their trading decisions. We also find that insiders who have allocated a great (small) proportion of their wealth to insider stock sell more (less) before bad news earnings disclosures. Finally, insider selling is informative for future returns among those insiders who have the greatest proportion of wealth allocated to insider stocks. © 2009 Elsevier B.V. All rights reserved.




Kallunki, J. P., Nilsson, H., & Hellström, J. (2009). Why do insiders trade? Evidence based on unique data on Swedish insiders. Journal of Accounting and Economics, 48(1), 37–53. https://doi.org/10.1016/j.jacceco.2009.06.002

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free